Sales in the international carrier unit rose 18 percent to 1.3 billion kronor ($137 million), but Igel said the earnings trend was unsatisfactory and ``a comprehensive review″ was under way to improve cash flow.

Telia stated restructuring efforts were starting to pay off. The former state company that was partially privatized in June 2000 had 16,561 employees on June 30, compared with 24,979 last year.

Its merger with Finnish operator Sonera was approved by the European Union on July 10. ``We can now proceed with the preparatory work in earnest,″ Igel said.